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F. Naz, Chartered Accountant

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3. Assignment Financial Statement Analysis The analysis

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3. Assignment: Financial Statement Analysis

The analysis of financial statements is critical for determining the financial health of any organization. Financial statement analysis, however, demands a thorough understanding of accounting rules and principles; if the information on these statements is to be interpreted accurately, a firm knowledge of the uses and limitations of these statements is vital.

• Address each of the following points about financial statements and financial statement analysis in a 750- to 1,050-word paper in APA format:

o The major purposes of financial statements o The type of information financial statements provide o The limitations of financial statements o The outside factors upon which the conclusions drawn from these statements are reliant o How items in common-size statements are presented o How ratios in ratio analysis are computed and used o Why most financial analysts prefer ratio analysis to common-size statements

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